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  1. #1
    Join Date
    Apr 2006
    Posts
    4,018

    Default House sells for crazy price in Hamilton

    Hi everyone,

    I went to an onsite auction yesterday, at the following property: http://www.lodgerealestate.co.nz/?na...uniqueid=H7619

    Hamiltonians will probably know the property - it sticks out like canine testes.

    The house needs tens of thousands of dollars spent to get it into a reasonable state. It is zoned residential, and is on a corner site on a high traffic flow intersection. The house is on two titles, and each piece of land would be worth around $180K.

    The house sold for $652,500.

    That is crazy money, in my opinion.

    Anyone else have any "crazy money" stories from the marketplace?

    Paul.

  2. #2
    Join Date
    Oct 2006
    Posts
    368

    Default

    Wow - I've looked at, and loved that Villa for years - I instantly knew it when I saw the photo and I haven't lived in Hamilton for 14 years.

    I guess it wouldn't take much to rezone as Commercial with the other corners both being Commercial? Heaps of traffic past the site...

    I wonder if I can buy the house and move it somewhere..... <brain ticking over>....

  3. #3
    Join Date
    Apr 2006
    Location
    Wellington
    Posts
    385

    Default Crazy Prices

    I have seen some crazy prices on property i was initially interested in.

    The most recent was an Apt in need of gutting and refurb in a badly kept block of 6 in Kilbirnie.

    Agent initially told me bout it and said could prob pick it up for $220k. and on sell it at close to $300k. done ses I . However he wasnt the listing agent and turns out they went to Auction.

    Sold with 9 bidders for $271,500. nearly as much as the initial estimate the agent said I could sell it for after refurb. Crazy ..

    Another another house needing repiling, re wiring, re plumbing and needed new...well new everything. Sold for close to $500k. OMG. again in Kilbirine.

    I have 3 or 4 mor I could mention. There is no sign of prices droping in Welly at the moment.

    Best Wishes,

    Niall

  4. #4
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,776

    Default The other side of the coin.

    I've always kind of liked the line from the infamous Bob Jones.

    " I've never paid too much for a property. Only sometimes too early"

    But I too am thinking from my view way back here in Italy that NZ house prices are pretty crazy.


    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  5. #5
    Join Date
    Apr 2005
    Location
    Wellington
    Posts
    1,584

    Default

    Had a look at a rundown house in Te Aro on 159m2 of land. It was all boarded up, holes in the floor/ceiling/walls, I couldn't even find the bathroom/toilet. It even had a "dangerous and insanitary" notice slapped on it by the council.

    Agent said from $200k, GV was $240k. According to agent it went for "close to half a million".

    Property here is still cheap if you care to compare to overseas though. You think 6% is a poor return... even in Sydney you're looking at 3% or less. So there is obviously scope for property prices to double in the medium term.

  6. #6
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    I think your first thought Superdad shouldn't be "This is crazy money" but "What did the buyer see in the deal that I missed?"
    I'm not saying there is necessarily anything you missed but I know on many occasions I have been able to buy something at asking or above because I knew something no one else did.
    I would always bail up the buyer if I could and ask him why he paid so much. A great opportunity to learn.

  7. #7
    Join Date
    Apr 2006
    Posts
    4,018

    Default

    Hi Dean,

    That's what I (and others) were thinking - what have we missed?

    As Rueben mentions above, the obvious twist might be that it could be re-zoned as commercial.

    I do plan to find the buyers once they have possession, and find out their plans for the property.

    Thanks Dean,

    Paul.

  8. #8
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    Would the $72,444 GST claim and renting it as commercial make it a good investment? There's a number of people buying residential in Whangarei for conversion to commercial. Any way I do the numbers, they're still losing money annually but I guess they must have deep pockets and longer term goals!?

  9. #9
    Join Date
    Oct 2006
    Posts
    368

    Default

    I was thinking more like they are probably going to move the house off and put several retail units up.

    I've never invested in commercial and have no idea of the numbers - but that corner would be excellent for service station, mac donalds or burger king, medical centre, or even 3 or 4 (or more?) separate commercial units.

  10. #10
    Join Date
    Jun 2005
    Location
    Hamilton
    Posts
    773

    Default

    I would have loved that one to do up, we are going to be on the look out for a do up to keep for my husband to do up soon but not sure I would pay that much. Still if they want to keep forever and it can have another house added onto the section I would say it is still an OK deal, if you never sell in time prices catch up. Not how I do it but still an ok stratergy for those planning to keep long term and possibly wanting some negative cashflow so they can offset their huge wage as many do.

    Must start looking soon for one of these types of properties. Perhaps Hamilton is not a good option if we have to pay that much.


 

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